Economy

Banks to finance private energy-efficient projects

(Xinhua)
Updated: 2011-05-16 20:23

SHANGHAI - Asian Development Bank (ADB) and Shanghai Pudong Development Bank (SPD Bank) signed an agreement on Monday to jointly finance energy-efficient projects led by China's private sector.

According to the agreement, the ADB will offer 300 million yuan ($46.09 million) to the SPD Bank as a partial credit guarantee.

Under a financing plan for energy-efficient construction projects launched by the ADB, the ADB will extend 800 million yuan in partial credit guarantees to its financial partners.

Currently, the SPD Bank is ADB's first partner in China.

The move aims to support the financial partners of private enterprises by financing retrofitted, energy-efficient buildings or newly-constructed energy-efficient buildings.

"By providing partial credit guarantees, we hope to relieve the financing bottleneck to help the private sector enter the energy-saving building sector and exert a positive effect on the country's efforts to control greenhouse gas emissions," said Hisaka Kimura, senior investment specialist with the ADB's Private Sector Operations Department.

Under its financing plan, the ADB is working with Johnson Controls Inc., a US-based energy management company. John Controls will identify buildings with energy-saving potential while the ADB will share project credit risks with financial institutions.

Johnson Controls, a business operating in more than 150 countries and regions, has completed around 1,900 energy-efficient projects in different sectors.